The Spanish startup ecosystem continues to enjoy good health. Today our country has more than 11,000 startups, employing some 140,000 people. These data place us as the fourth European power in number of startups, behind only the United Kingdom, France and Germany.
It is a fact that in the last decade the Spanish startup ecosystem has grown significantly. The numbers speak for themselves: this sector has increased its value twenty-fold, reaching more than 83 billion euros by 2022.
It is also true that during the first half of 2023 the situation has changed slightly. It is easy to see that investors are a little more cautious and that company valuations are significantly lower than just a few months ago.
However, it seems that, despite this, international investors have identified Spain as a priority investment destination for this type of company, seeing it as a source of potential success stories, and some of the world's most renowned funds are committed to investing in Spanish startups.
In short, the figures certify that the year-on-year increase in the volume of investment attracted in Spain is higher than the average for the rest of Europe, which certifies the maturity of emerging companies in our country.
But, taking into account this maturity and internal strength that the sector has already reached today, it is time to ask what is happening with the internationalization of Spanish startups.
Scaleups
Internationalization is the key for startups to grow. Most entrepreneurs know this and are looking for the growth of these companies and their conversion into what are known as scaleups: startups that already have some experience and want to take an ambitious leap.
In order to become a scaleup it is necessary to have an internationalization project and that this aspect is understood by the company and its partners as a strategic decision practically from the beginning of its activity, feeling global and planning its international expansion carefully and accompanied by specialized legal advisors.
Latin America is one of the main destination markets for Spanish entrepreneurs
Based on current data, Latin America is one of the priority destinations for Spanish startups.
According to several studies, this American region could already account for more than 40% of the total foreign turnover of Spanish startups and the most representative sectors would be telecommunications and e-commerce.
It should be noted that the entrepreneurial ecosystem in Latin America has also been expanding at a fast pace. Such is the growth that last year it managed to capture more than 15,000 million dollars in venture capital investments, according to data from the Association for Private Equity Investment in Latin America. Today this area is one of the most sought after by Spanish startups seeking to expand their businesses to other countries.
Spanish startups that choose to internationalize in Latin America do so mainly in countries such as Mexico and Colombia, as they understand that these are countries in growth, highly stable, with reliable regulatory frameworks and where Spanish entrepreneurs have detected that there are great business opportunities that have not been covered by national companies.
In case you are an entrepreneur and want to analyze the possibilities of internationalization of your company, do not hesitate to contact us. We will be happy to help you with everything you need.